Panmure Liberum has reaffirmed its 'buy' rating and 225p price target on Optima Health PLC (AIM:OPT), saying the occupational health specialist remains on track for the full year despite recent share price weakness.
The broker believes the stock’s pullback looks overdone given the company’s steady trading, cash generation and growing contract base.
Half-year revenue is expected to come in at around £59 million, up 17% on last year, driven by both organic growth and recent acquisitions.
Optima has made three deals since its IPO, BHSF Occupational Health, Cognate Health and Care First, which together add £17 million of annual revenue.
Integration is progressing smoothly, with Cognate now rebranded as Optima Health Ireland and serving as a hub for the company’s expansion across both the UK and the Republic of Ireland.
Panmure highlights strong tender activity, underpinned by rising demand for occupational health services as workplace sickness rates remain high.
The broker expects Optima’s newly won UK Armed Forces Recruitment Service contract, worth up to £290 million over ten years, to start contributing meaningfully from 2027.
Net debt remains low at £4.7 million despite £6 million of acquisition spending, suggesting good free cash flow support for future deals.
Panmure also notes management’s plans to streamline internal systems to lift efficiency and scale operations, with limited short-term cost impact.
The analysts conclude that Optima’s growth story “remains intact”, supported by acquisitions, new contracts and a strong public-sector pipeline.
For investors, the recent weakness offers an opportunity to buy into a business well placed to benefit from the UK’s growing focus on workplace health.
In afternoon trading, the shares were up 3% at 202.55p.